Businesses in England are facing a £500m hike in business rates after the latest inflation figures showed inflation RPI for September was 2.3%.
Gerald Eve partner Jerry Schurder forecast the latest data would mean a sizeable increase for occupiers in 2015-16.
He said: “Business rates are in urgent need of reform. At the very least, pegging business rates to the Consumer Price Index – currently 1.1% – would provide welcome relief to UK businesses and halve next year’s rates increases.”
He said the end of transitional relief and the postponement of the revaluation for business rates has created a “perfect storm” for firms.
Gerald Eve identified some extreme examples of tax hikes caused by these conditions, including a newsagent’s kiosk in Bristol that faces a rate rise of 534% and a Liverpool hostel which faces a £49,000 rise from £9,719 to £58,719.
